WEBVTT R-APPRECIATED.>> I HAVE TALKED WITH PEOPLE, IHAVE SEEN THEM, I'VE SEEN THETEARS IN THEIR EYES.I'VE SEEN THE GREAT ANXIETY.THAT IS A HUGE PROBLEM FOR OUREMPLOYEES.REPORTER JCPS SUPERINTENDENTDONNA HARGENS SAYS MANAGEMENTADVISORY GROUP INTERNATIONAL WASHIRED TO STUDY THE SALARIES OFDISTRICT EMPLOYEES.WHEN THE COMPANY RELEASED THEIRFINDINGS LAST SPRING, THE STUDYCLAIMED THE DISTRICT WAS PAYINGSOME EMPLOYEES, WHO WEREN'TTEACHERS, 50 MILLION DOLLARSMORE A YEAR COMPARED TO SIMILARDISTRICTS.WE RELIED ON THEM.WE RELY ON THEM FOR ACCURATEINFORMATION.THAT IS THE REASON WE ACTUALLYCONTRACTED WITH THE FIRM.REPORTER: THE RESULTS OF THESTUDY CREATED FRICTION BETWEENTEACHERS AND THE ADMINISTRATIONWHEN THE SCHOOL BOARD CONSIDEREDPAY FREEZES FOR NEARLY ALL OFTHE DISTRICT'S TEACHERS>> I REALLY KNOW THAT I AM HURT.THIS H CAUSED ANXIETY FOR OUREMPLOYEES.THIS IS A PEOPLE ISSUE.REPORTER: MANY QUESTIONED THERESULTS OF STUDY, SAYING THEMATH DIDN'T ADD UP.>> IT WAS ACTUALLY ARE CHIEFFINANCIAL OFFICER THAT SAID,SOMETHING DOES NOT SEEM RIGHT.THEY WENT RIGHT IN FOR ANDDISCOVERED THE ERROR ON THEIREND.REPORTER IN A LETTER TO THEDISTRICT, THE COMPANY'S ATTORNEYSAYS THERE WAS AN ERROR INSTUDY.THE NUMBERS DID NOT SEEMPOSSIBLE.REPORTER: CHRIS KOLB WASN'T ONTHE SCHOOL BOARD WHEN THERESULTS OF THE STUDY WERERELEASED.HE SAYS NOW THAT HE IS, HE WANTSTO KNOW WHY THE NUMBERS WEREN'TCHECKED SOONER>> HOW COULD WE NOT CHECK THISFIGURE?WHY DID WE UNCRITICALLY ACCEPTTH FIGURE?WHY DID WE ADVOCATE FORMOMENTOUS CHANGES WITHIN THESCHOOL DISTRICT WITHOUT DOINGOUR HOMEWORK?REPORTER: SEVERAL BOARD MEMBERSI'VE SPOKEN WITH, AS WELL AS THESUPERINTENDENT, SAY THEY ARELOOKING INTO WHAT LEGAL OPTIONSTHEY HAVE MOVING FORWARD.THEY SAY AT THIS POINT, IT'S TOOEARLY TO DECIDE IF THEY WILLTAKE LEGAL ACTION AGAINST THECOMPANY WHO DID THE STUDY.REPORTING LIVE, EMILY MAHER WLKYNEWS.JENNIFER: THANK YOU EMILY.JCPS PAID $192,000 FOR THESTUDY.DOCTOR HARGENS SAYS IT TOOKABOUT TWO YEARS FOR THE REPORTTO BE COMPLETED.SHE SAYS THE STUDY WAS DONE TOMAKE SURE DISTRICT EMPLOYEWERE BEING PAID FAIR AND

JCPS Superintendent: Company made "$40 million mistake" in salary study

She said the study “grossly overestimated, by tens of millionsof dollars,” the salaries of non-teacher positions.

“We relied on them,” said Hargens. “We relied on them foraccurate information. That’s the reason we actually contracted with a firm.”

The board hired MAG to do the compensation study afterthen-state auditor Adam Edelen released results of an audit that his officeconducted in 2014.

At the time, Edelen called the JCPS district a “bloatedbureaucracy.”

The results of the MAG study, which were released in May 2016,claimed the district was paying tens of millions of dollars each year overmarket value salaries.

The study said JCPS teachers were some of the highest paid inthe country on average, compared to school districts of similar size.

As a result, the board considered pay freezes for nearly allteachers across the district.

“I’ve talked with people, I’ve seen the tears in their eyes,”said Hargens. “I’ve seen great anxiety. To me, this is a huge problem foremployees.”

At the board’s regularly scheduled meeting on Tuesday, Hargenssaid the district “requested data from MAG to confirm its findings.”

Hargens said when the district began looking at the data, theJCPS chief financial officer found the study contained errors.

The study stated JCPS had paid $52 million more annually insalaries than the market average.

“The actual cost is closer to $10 to $14 million,” said Hargens.“A $40 million mistake by MAG is unacceptable.”

During her report to the board, Hargens said MAG has takenresponsibility for the error.

She said in a letter to the district, MAG’s attorney said they“immediately” reviewed the data and found the study to be incorrect.

“To say that this district is outraged is an understatement,”said Hargens. “This study caused employees to feel unvalued andunderappreciated. It also caused significant stress between employees atdifferent levels.”

Hargens called on the company to apologize to the district’semployees, board and community.

School board member Chris Kolb said he questioned the results ofthe study when they were released.

“The numbers just did not seem possible based on what a numberof folks knew about the district,” said Kolb.

Kolb wasn’t on the board when the results of the study werereleased.

He said now that he is, he wants to know why the numbers weren’tchecked sooner.

“How could we not check this figure,” said Kolb. “How could weuncritically accept this figure and really advocate for momentous changeswithin the school district without doing our homework.”

Kolb, Hargens and board chairman Chris Brady said they arelooking into what legal options they have moving forward.

When asked if the district would request a refund from MAG,Brady said “Those options might cost more than it’s worth to see restitution.”